for the period from January 1st to June 30th 2019...2019/09/27 · Panagiotis Lykos Panagiotis Spyropoulos Ilias Karantzalis I.D. No. AB 607588 I.D. No AI 579288 I.D. No AN 644777

SEMI-ANNUAL FINANCIAL REPORT for the period from January 1st to June 30th 2019

According to article 5, Law 3556/2007

Semi-annual Financial Report for the period 1/1 - 30/6/2019 (in Euro - €)

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CONTENTS

A) STATEMENTS BY THE REPRESENTATIVES OF THE BOARD OF DIRECTORS ............................................................................ 3

B) SEMI-ANNUAL MONTH REPORT OF THE BOARD OF DIRECTORS ........................................................................................... 4

C) REVIEW REPORT ON INTERIM FINANCIAL INFORMATION ................................................................................................. 10

D) SIX-MONTH CONDENSED FINANCIAL STATEMENTS ............................................................................................................ 11

Consolidated Statement of Financial Position ............................................................................................................................................ 12

Company’s Statement of Financial Position ............................................................................................................................................... 13

Consolidated Income Statement .............................................................................................................................................................. 14

Company’s Income Statement ................................................................................................................................................................. 15

Consolidated Statement of Comprehensive Income .................................................................................................................................. 16

Company’s Statement of Comprehensive Income ..................................................................................................................................... 17

Consolidated Statement of Changes in Equity ........................................................................................................................................... 18

Company’s statement of changes in equity .............................................................................................................................................. 19

Consolidated Statement of Cash Flows ..................................................................................................................................................... 20

Company’s statement of Cash Flows ........................................................................................................................................................ 21

Notes to the Financial Statements ........................................................................................................................................................... 22


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A) STATEMENTS BY THE REPRESENTATIVES OF THE BOARD OF DIRECTORS

The members of the Board of Directors: 1) Panagiotis Lykos, Chairman of the Board of Directors 2) Panagiotis Spyropoulos, Vice Chairman & Group CEO 3) Ilias Karantzalis, Member of the Board of Directors in the above capacity, especially assigned by the Board of Directors of the Société Anonyme under the title «INFORM P. LYKOS S.A.», declare and certify that to the best of our knowledge: (a) The six-month, separate and consolidated, financial statements of «INFORM P. LYKOS S.A.» for the period 1/1/2019 - 30/06/2019, which were prepared according to the effective accounting standards, present truly and fairly the assets and liabilities, the equity and the financial results of the Company as well as of the consolidated companies as a total, according to par. 3 - 5 of article 5 of L. 3556/2007 and the authorizing decisions of the BoD of the Hellenic Capital Market Commission. (b) The six-month management report of the Board of Directors presents in a true and fair way the information required according to par. 6 of article 5 of L. 3556/2007 and authorizing decisions of the BoD of the Hellenic Capital Market Commission.

Koropi Attica, 26 September 2019

The designees

Chairman of the Board of Directors Vice Chairman & Group CEO Member of the Board of Directors

Panagiotis Lykos Panagiotis Spyropoulos Ilias Karantzalis I.D. No. AB 607588

I.D. No AI 579288 I.D. No AN 644777


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B) SEMI-ANNUAL REPORT OF THE ISSUER’S BOARD OF DIRECTORS

The present Semi-annual Report of the Board of Directors concerns the period of the first half of the current year 2019. The report was prepared and is in accordance with the Greek legislation, Law 3556/2007 (Official publication in National gazette 91A / 30.4.2007) and the issued executive decisions of the Hellenic Capital Market Commission. This report summarizes the financial information of the Group and the company INFORM P. LYKOS S.A. for the first half of the current year, significant events that took place during this period and their effect on the six-month financial statements. In addition, it outlines the main risks and uncertainties that Group companies may face in the second half of the year and finally lists significant transactions between the issuer and its affiliates. (a) Significant events of the first half of 2019 The first half of 2019, INFORM was assigned and successfully carried out the production of security ballots in the presidential elections held on 23 February 2019 in Nigeria. The implementation process took place in 2 stages. The 2 state-of-the-art factories of the group (located in Greece & Romania) gained the necessary certifications by Nigeria's State Organization and Election Organization, as suitable for the production of security forms and the management of large and critical government projects. Following this certification, all works began to complete such a demanding project. The high standards set out, are reflected in the fact that it is a project of particular requirements for the production of security ballot forms, distribution, personalization and dispatch to 120.000 polling stations in the country, within a very tight timetable. The project posed a great challenge for INFORM as it had to complete the production of 150 million security ballots consuming 1.800 tons of paper in just 35 days. The project amounted to 4,7 million euros and demonstrates the company's dynamics, to meet an international project, of the highest caliber and volume with absolute success. In addition, INFORM ROMANIA (a Subsidiary of INFORM GREECE) successfully concluded a Business Transfer Agreement (BTA) with STAR STORAGE on the 1st of April 2019. The STAR STORAGE Business, that was transferred, was involved in Output Management Outsourcing (OMO Business) including both Digital printing and distribution. The transaction involves transfer of customer contracts, know how, employees and equipment that are currently supporting this line of business. The purchase price for the transfer of the OMO Business amounts to € 2,5 million. At the same time, INFORM supports and implements the transition of printed communication of its customers in the digital era through CCM (Customer Communication Management). In the context of the digital transformation process / program of its customers, from now on, INFORM is expanding the range of services it offers to existing customers and the opportunity to attract new customers by providing document management and other electronic communication services in a matter of seconds regardless of how they are used (online viewing, sending or printing). (b) Performance and financial position of the Group The INFORM Group presented an increase in sales in the first half of 2019 with the project of the production of security ballot in the presidential elections in Nigeria to significantly contribute to this growth both in sales and operating profitability. Thanks to the significant contribution of the project of Nigeria, the operating profitability increased by 42,7% compared to the first half of 2018. Despite price pressures, the Group's sales volume continues to be high due to long-term contracts and stable customer relationships, generating a significant share of recurring revenues. Group sales in the first half of 2019 increased by € 3,5 million or +10,2% compared to the corresponding period of 2018 and reached € 38,4 million versus € 34,9 million, with the project of the production of security ballots in Nigeria contributing € 4,7 million and secondly the transfer of the new customer contracts (BTA) in Romania contributing € 0,8 million in the second quarter of 2019 in which were incorporated. The above-mentioned sales’ increase offsets OASA project for the production of the electronic rechargeable cards (ATH.ENA Card) and tickets (ATH.ENA Ticket) implemented in Greece, amounting to € 2,5 million, in the first half of 2018. Specifically by excluding intra-group transactions, the sales of the parent company INFORM P. LYKOS SA reached € 18,1 million versus € 17,8 million in the corresponding period of 2018, increased by € 0,3 million, while the sales of the subsidiary in Romania amounted to € 19,9 million versus € 16,7 million in the first half of 2018, increased by € 3,2 million. The operating expenses in the first half of 2019 increased by € 1,3 million or 16,7% compared to the corresponding period of 2018, mainly to cover the new projects of the Group. The relevant table is presented below:

30/6/2019 30/6/2018 Δ 19-18 % Δ 19-18

Revenues 38.419.425 34.859.797 3.559.628 10,2%

Cost of materials (25.446.791) (24.373.341) (1.073.450) 4,4%

Gross profit I 12.972.634 10.486.456 2.486.178 23,7%

Gross margin Ι 33,8% 30,1%

Production cost (6.518.829) (6.138.302) (380.527) 6,2%

Cost of sales (31.965.620) (30.511.643) (1.453.977) 4,8%

Gross profit II 6.453.805 4.348.154 2.105.651 48,4%

Gross margin ΙI 16,8% 12,5%

Other income 558.596 696.339 (137.743) -19,8%

Selling and distribution expenses (2.270.856) (1.997.520) (273.336) 13,7%

Administrative expenses (2.016.145) (1.750.046) (266.099) 15,2%


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Research and development expenses (280.032) (238.090) (41.942) 17,6%

Other expenses (284.455) (439.986) 155.531 -35,3%

+ Depreciation & amortization 1.723.326 2.103.433 (380.107) -18,1%

EBITDA 3.884.239 2.722.283 1.161.956 42,7%

- Depreciation & amortization (1.723.326) (2.103.433) 380.107 -18,1%

EBIT 2.160.914 618.851 1.542.063 249,2%

Financial income 14.018 2.345 11.673 497,8%

Financial expenses (638.409) (621.535) (16.875) 2,7%

Net finance costs (624.391) (619.190) (5.201) 0,8%

EBT 1.536.523 (339) 1.536.861

Income tax (136.893) 38.318 (175.211) -457,3%

EAT 1.399.630 37.979 1.361.651

Operating expenses excluding depreciation & amortization

30/6/2019 30/6/2018 Δ 19-18 % Δ 19-18

Production cost (6.518.829) (6.138.302) (380.527) 6,2%

Selling and distribution expenses (2.270.856) (1.997.520) (273.336) 13,7%

Administrative expenses (2.016.145) (1.750.046) (266.099) 15,2%

Research and development expenses (280.032) (238.090) (41.942) 17,6%

+ Depreciation & amortization 1.723.326 2.103.433 (380.107) -18,1%

Total (9.362.535) (8.020.525) (1.342.010) 16,7%

% Operating expenses on sales 24,4% 23,0%

As a result of the above, the key financial profitability figures of INFORM Group are presented, as follows:

The earnings before interest, taxes, depreciation and amortization (EBITDA) of the Group, reached € 3,9 million compared to € 2,7 million in the corresponding period of 2018, increased by € 1,2 million or + 42,7% due to the good profitability of the above-mentioned projects,

The earnings before interest and taxes (EBIT) of the Group, reached € 2,2 million compared to € 0,6 million in the corresponding period of 2018, increased by € 1,6 million, improved further by € 0,5 million due to the reduced depreciations from the impairment of old technology machines which took place within last year,

The earnings before taxes (EBT) of the Group, reached € 1,5 million compared to marginally negative (€ 339) in the corresponding period of 2018,

The consolidated earnings after taxes (EAT) of the Group, reached to € 1,4 million compared to € 38 thousand in the corresponding period of 2018.

The consolidated operating cash flow in the H1 of 2019, reached € 0,7 million compared to € 5,6 million in the corresponding period of 2018. The decrease is mainly due to the increase in inventories by € 2 million to cover the above-mentioned projects and the different time that the repayment of the trade liabilities took place between the different semesters. The net debt of the Group amounted to € 19,5 million in the first half of 2019 from € 14,9 million in the corresponding period of 2018, increased by € 4,6 million, mainly due to the investments in Romania, the acquisition of the business activity of STAR STORAGE by € 2.5 million and the purchase of the second ultra-modern digital machine by € 0.8 million, as well as the Group needs for working capital by € 0.9 million and the impact of the first adoption of IFRS 16 by € 0.4 million. According to the above, the financial performance ratios of the Group in the first semester 2019 compared to first semester 2018 were as follows: - The margin of earnings before interest, taxes, depreciation and amortization amounted to 10,1% from 7,8%, increased by 2,3 basis points, - The margin of earnings before interest and taxes amounted to 5,6% from 1,8%, increased by 3,8 basis points, - The margin of earnings before taxes amounted to 4%, increased by 4 basis points, - The performance ratio of equity amounted to 3,4% from 0,1%, increased by 3,3 basis points, - The performance ratio of assets amounted to 1,8% from 0,1%, increased by 1,7 basis points, - The ratio of liabilities to equity amounted to 0,9 at the same level with the first semester of 2018, - The ratio of bank debt to equity amounted to 0,5 at the same level with the first semester of 2018, - The ratio of liquidity amounted to 1,3 from 1,5%, decreased by 0,2 basis points. (c) Significant events after the end of the reporting period INFORM Romania (INFORM LYKOS S.A), a subsidiary of INFORM P. LYKOS S.A. Greece, on the 8th of August 2019, signed an agreement to acquire the majority stake in SISTEC NEXT DOCS S.R.L. and SISTEC CONFIDENTIAL S.R.L. More specifically INFORM Romania will acquire 65,07% of SISTEC NEXT DOCS S.R.L. and 65,45% of SISTEC CONFIDENTIAL S.R.L. The finalization of the agreement will be subject to the successful fulfillment of the requirements set forth in the Share Purchase Agreement (SPA). The estimated time of finalization will not exceed a 3 month period. By carrying out such an investment, INFORM extends the services range in its portfolio, currently being offered to existing customers, as well as the ability to enhance new business development by providing document management services, scanning, digitization and electronic archiving. The above mentioned services are fully connected and complementary to existing INFORM activities related to data management reproduction in either hard copy or digital form. SISTEC NEXT DOCS and SISTEC CONFIDENTIAL have been active in the Romanian market for the past five (5) years with a successful track record and have a significant market share in their respective business industries. The


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acquisition price for 65% of the shares of the above mentioned companies amounts to € 3,5 million and will be paid following the successful fulfillment of the terms of the agreement. At the same time, the Board of Directors of INFORM in Greece on 20.06.2019 decided to start the spin - off process of the production, processing, development and trading sector of printed information systems and its contribution to a new 100% subsidiary company established for this purpose. The business unit spin - off and its contribution to the new company will be carried out in accordance with the provisions of Law 4601/2019, Law 4548/2018 and the article 54 of Law 4172/2013. The balance sheet date has been set as 30.06.2019. The intention of the company is to complete the spin - off within fiscal year of 2019. The spin - off essentially aims at the organizational segregation of the Group's business activities and will not affect its financial data as the new subsidiary company formed for this purpose will be fully consolidated, as the Group will own its 100%. The completion of the spin - off is subject to the approval required by the INFORM General Meeting of shareholders as required by law and by obtaining all necessary approvals of the competent Authorities for this purpose. Apart from the above, no further event has occurred after 30/06/2019, which may have a significant impact on the Group's financial position or operation. (d) Main risks and uncertainties for the second half of 2019 The Group uses financial instruments for trading, financial and investment purposes. The use of financial instruments by the Group materially affects the financial position, profitability and cash flows. The main risks arising from the financial instruments held by the Group are mainly the following:

Market risk (currency risk and interest rate risk)

Credit risk

Liquidity risk

Market risk In relation to the risk arising from general market conditions, the Group has reduced exposure to this risk, due to the geographical dispersion with equal distribution of sales between Greece, Romania and Other Countries with major exposure to the markets of Central and Eastern Europe. A significant part of these sales is directed to the financial sector and mainly banking. The continuing negative economic conditions make the markets, in which we operate more vulnerable. However, the products we offer to our customers in both private and public sector are considered essential for their daily operation and growth. Furthermore, by achieving significant reductions in its operating expenses, the Group is particularly competitive and can offer high-level products and services at competitive prices. Regarding the risks arising from the volatility of interest rates and exchange rates: Exchange rate risk The main part of economic transactions of the Group companies (Greece, Romania, Albania) is dominated in the currency of the main economic environment, where each company operates (in operation currency). In Romania, part of the obligations of the company is denominated in RON and in Albania is denominated in ALL. An exposure to exchange rate fluctuations exists regarding the value of the Group‘s investments in Romania, only at the time of consolidation of financial statements and their translation from the functional currency RON into the presentation currency Euro. Interest rate risk All bank debt of the Group is connected with fluctuating interest rates, maintaining however, the option to convert into stable interest rates, depending on the market conditions. The company does not use financial derivatives. As in the previous year, other financial assets and other financial liabilities are not affected significantly by interest rates. Credit risk The Group has established and applies procedures of credit control, aiming at minimization of bad debt. Sales are directed mainly in big public and private organizations with evaluated historic creditworthiness. In case indications of bad debts appear, the relative impairment provisions are made. Liquidity risk The Group manages its liquidity needs by careful follow-up of debts, long-term financing obligations and payments. Liquidity needs are monitoring on a daily basis and planning of payments - on weekly and monthly basis. Special attention is paid to management of inventories, receivables and liabilities in order to achieve the highest possible cash liquidity for the Group. The central financial department of the company, responsible for risk management, operates following certain rules approved by the Board of Directors.


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The Board of Directors through appointee members: (a) Establishes and implements procedures and arrangements that allow the identification of risks which are associated with the activities, procedures and the Company's operating systems (notably credit risk, market risk and operational risk). (b) Determines the acceptable level of risk. (c) Ensures that the Group has the required capital adequacy and overall risk management arising from its operation. (e) Estimates for development of activities in the second half of 2019 The Group having extensive experience and know-how in integrated solutions - services has developed long term customer relationships offering high level products and services, at competitive prices, so as to be considered a strategic supplier of banking institutions, telecommunications and other organizations either in the private sector or in the public sector. Group’s main objective focus on creating further value added to the shareholders into the following fields:

New markets and new customers It will continue to focus on the increase of market share of existing markets, on the development of exports, and also will focus at exploring and evaluating new growth opportunities at the sector of secure documents management and information,

New products and services It will accelerate the development of new digital services by providing integrated solutions and services and aligned with the evolving needs of customers and in accordance with the development of technology. Indicatively, we mention services such as e-statements, dynamic statements, customer interactive communication, scanning and archiving, hybrid mail, cloud printing.

Efficiency improvement It will further utilize low-cost facilities in order to further increase the competitiveness and profitability, it will continue to improve its efficiency and invest in new technologies that will increase production capacity and reduce costs, in order to enhance profitability.

Potential strategic co-operation opportunities It will continue to search potential opportunities for strategic partnerships, aiming at a further strengthening of its position in the broader region of Central and Eastern Europe. (f) Non-financial information INFORM has incorporated the principles of Sustainable Development into its business activities, recognizing that these principles are a prerequisite for its long-term development. INFORM’s key Sustainability priorities are, ensuring a healthy and safe working environment, caring for the natural environment, fulfilling of customers' needs and expectations and the harmonious co-existence with the local communities where it operates.

Our mission to transform each communication into strategic source of information.

Policies and Management Systems Aspiring at Sustainable Development, INFRORM has developed and adopted specific policies and puts into practice adequate management systems and procedures that uphold responsible operation and define the way in which the Company's goals are achieved. More specifically, the Company has established and implements, among others, the following policies and codes:

Internal Operating Regulation

Occupational Health and Safety Policy

Environmental Policy

Quality Policy

The management of Corporate Responsibility by INFORM is based on the development and implementation of certified management systems to all of its operations and facilities, while attaining high performance in all segments. Specifically, the following systems are applied:

Quality management system in accordance with ISO 9001

Environmental Management System in accordance with ISO 14001.

Workplace Health and Safety Management System in accordance with OHSAS 18001.

All production units have been audited and certified according the above Management Systems. For INFORM, management systems are dynamic tools allowing the Company to secure its regular operation and to achieve continuous improvement. The implementation of certified management systems plays a very important role in achieving the goals set by the Company, and secures all their operations in light of the ongoing demands for effective risk management. Caring for Our People The Company focuses on making continuous investments in human capital, by encouraging initiative taking for synergies, and on continuous development through training. INFORM keeps relations of trust with all employees, while seeking to maintain a safe and discrimination-free working environment that offers at all times training opportunities and fair rewarding. The Company's main concern is to secure optimum working environment demonstrating fairness and equal reward, showing respect for human rights, diversity and equal opportunities to all employees. The policies and initiatives of INFORM that concern human resources aim at the


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effectively recruitment, development and retaining of employees. Steadily oriented to human values, the Company strives to implement responsible management practices by focusing on material issues such as:

• ensuring of the health and safety of its employees

• creating a work environment of fair reward, respecting human rights and diversity

• safeguarding of jobs

• providing equal opportunities for all employees

• ensuring ongoing training and education

• providing additional benefits

In total, the Group's personnel amounted to 388 employees at 30/06/2019 from 378 on 30/06/2018. INFORM seeks to recruit, develop and retain the most competent individuals so as to ensure that business goals and priorities are achieved. Environmental Responsibility INFORM, has carried out the assessment of its environmental aspects, confirming that there is not a significant burden on the environment deriving from its operations. However, recognizing the importance of environmental protection for all of its stakeholders, the Company is stepping up its efforts to monitor and improve its environmental performance. In this context, INFORM has implemented an Environmental Management System, certified according to ISO 14001. The purpose of implementing an Environmental Management System, is to effectively manage any significant environmental aspects and impacts that arise from the Company’s operations in order to minimize any possibility of environmental spill. In addition, the Environmental Management System ensures the harmonization of the Company's operation with the relevant environmental legislation, while achieving continuous environmental improvement. Detailed information on INFORM’s Corporate Responsibility programs and action plans are presented in Corporate Social Responsibility Report 2018 (June 2019), which is published on the Company’s website www.informlykos.com. The Corporate Social Responsibility Report is an important tool as it reflects and communicates the way in which the Company responds to important / material issues and to stakeholders’ expectations. (g) Research and Development The Group's research and development strategy focuses on the following objectives:

Innovative products and market-oriented solutions as the basis for the continuation of growth strategy Optimizing the use of resources and production processes.

Especially in the digital era, effective research and development is important as product cycles are short and the requirements of partners and end customers are evolving. This is particularly valid for the digital printing sector. We perceive these changes as opportunities and rely on R & D experts so that we can offer unique services to our customers that will help us grow in the short and long term. (h) Significant transactions with related parties The commercial transactions between the company and its related parties within the first half of 2019, were conducted on usual market terms, and did not sufficiently differ from the respective transactions conducted in the previous years and therefore, they do not materially affect the financial position and performance of the parent within the first six-month period of the current year.

Amounts in thousand Euro

30/6/2019

Parent Company - from/to subsidiaries Sales of

products / services

Purchases of

products / services

Receivables Liabilities

Lykos Paperless Solutions S.A. 30 0 0 28

Inform Lykos S.A. (Romania) 634 1.565 60 1.016

Inform Albania Sh.p.k. 89 0 102 0

Total 753 1.565 162 1.044

The following shall be mentioned regarding the above: The sales of the parent company to: (a) “Lykos Paperless Solutions S.A.” concern data processing products, (b) “Inform Lykos S.A. (Romania)” concern mainly printing items and data processing products, and (c) «Inform Albania Sh.p.k» concern printing items and services. The purchases of parent company from: “Inform Lykos S.A. (Romania)” concern mainly forms, services and printing items.

http://www.informlykos.com/


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(i) Branches The company has the following branches:

- Industrial Area Koropi - 7th klm Varis-Koropiou Avenue - Industrial Area Sindos - Thessaloniki

(j) Own shares There are no own shares. Koropi, September 26th 2019 Panagiotis Lykos President of the Board of Directors


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C) REVIEW REPORT ON INTERIM FINANCIAL INFORMATION

To the Board of Directors of “INFORM P. LYKOS S.A.” Introduction We have reviewed the accompanying condensed company and consolidated statement of financial position of INFORM P. LYKOS S.A. (the “Company”), as of 30 June 2019 and the related condensed company and consolidated statements of profit or loss and other comprehensive income , changes in equity and cash flows for the six-month period then ended, and the selected explanatory notes, which comprise the interim condensed financial information and which form an integral part of the six-month financial report as required by L.3556/2007. Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with International Financial Reporting Standards, as they have been adopted by the European Union and applied to interim financial reporting (International Accounting Standard “IAS 34”). Our responsibility is to express a conclusion on this interim condensed financial information based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit, conducted in accordance with International Standards on Auditing, as they have been transposed into Greek Legislation and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with IAS 34. Report on Other Legal and Regulatory Requirements Our review did not identify any material inconsistency or misstatement in the statements of the members of the Board of Directors and the information of the six-month Board of Director’s report, according to article 5 and 5a of L. 3556/2007, with the accompanying condensed interim financial information.

Athens, 27 September 2019

The certified chartered accountant

Nikos Garbis SOEL Reg. No. 25011


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D) SIX-MONTH CONDENSED FINANCIAL STATEMENTS

The attached six-month condensed financial statements that constitute an integral part of the six-month financial report under Article 5 of Law 3556/2007, were approved by the Board of Directors of the issuer (hereinafter INFORM P. LYKOS S.A. or the Company) on 26.09.2019 and have been published on the Company’s website - www.informlykos.com, as well as on the ASE website where they will remain at the disposal of investors for at least ten (10) years from their preparation and publication date. It is noted that the annual financial statements, audit reports of the statutory auditor and the reports of the board of directors of the subsidiaries are posted at the site www.informlykos.com.




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Consolidated Statement of Financial Position

The Statement of Financial Position of the Group for the period ended as at 30/06/2019 and the corresponding comparative figures of previous year 31/12/2018 are the following: THE GROUP

Note 30/6/2019 31/12/2018

Assets

Property, plant and equipment 12 46.478.199 46.572.490

Intangible assets 13 7.012.528 4.040.198

Other receivables 27.302 26.863

Investment property 224.126 232.761

Deferred tax assets 936.744 737.861

Non-current assets 54.678.898 51.610.173

Inventories 14 8.284.760 6.155.854

Contract assets 15 1.192.390 1.177.574

Current income tax assets 299.147 239.331

Trade receivables 16 11.584.984 10.691.363


Receivables from related parties 16 439.676 332.303

Cash and cash equivalents 17 1.576.870 5.944.584

Current assets 24.105.382 25.299.040

Total assets 78.784.280 76.909.213

Equity

Share capital 18 12.758.592 12.758.592

Share premium 18 13.805.791 13.805.791

Reserves 13.426.480 14.187.849

Retained profits 531.901 (867.435)

Equity attributable to shareholders of the Parent Company

40.522.764 39.884.798

Non-controlling interests 291.342 290.609

Total Equity 40.814.106 40.175.407

Liabilities

Loans and borrowings 19 17.335.294 18.119.192

Employee benefits 1.023.112 1.006.285

Other payables 9.017 9.017

Deferred tax liabilities 1.229.604 618.835

Non-current liabilities 19.597.027 19.753.329


Trade payables 20 11.992.242 11.864.004

Other payables 1.225.042 1.048.188

Contract liabilities 21 83.063 629.126

Liabilities to related parties 20 1.032.467 357.201

Provisions 288.617 293.023

Current Liabilities 18.373.147 16.980.477

Total Liabilities 37.970.174 36.733.806

Total Equity and Liabilities 78.784.280 76.909.213

The Notes to the financial statements presented in the special Section below constitute an integral part of the presented financial statements.


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Company’s Statement of Financial Position

The Statement of Financial Position of the Company for the period ended as at 30/06/2019 and the corresponding comparative figures of previous year 31/12/2018 are the following: THE COMPANY

Note 30/6/2019 31/12/2018

Assets

Property, plant and equipment 12 22.054.342 23.058.013

Intangible assets 13 1.805.871 1.836.751


Investments in subsidiaries 22.021.131 22.021.131


Non-current assets 46.805.355 47.641.959

Inventories 14 3.951.493 3.143.223

Contract assets 15 704.422 682.156


Trade receivables 16 3.623.007 3.405.092


Receivables from related parties 16 259.011 155.669

Cash and cash equivalents 17 1.056.865 5.183.007

Current assets 10.126.608 13.096.807

Total assets 56.931.962 60.738.766

Equity

Share capital 18 12.758.592 12.758.592

Share premium 18 13.805.791 13.805.791

Reserves 12.951.300 13.367.422

Retained profits (4.002.800) (4.329.736)

Total Equity 35.512.883 35.602.069

Liabilities




Non-current liabilities 14.830.498 18.325.610

Loans and borrowings 19 454.908 760.214

Trade payables 20 3.167.816 3.755.518


Contract liabilities 21 55.100 569.362

Liabilities to related parties 20 2.064.702 787.237

Current Liabilities 6.588.581 6.811.086

Total Liabilities 21.419.079 25.136.697

Total Equity and Liabilities 56.931.962 60.738.766



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Consolidated Income Statement

The Income Statement of the Group for the period 01/01 - 30/06/2019 and the respective comparative figures of the previous period are the following: THE GROUP

Note 30/6/2019 30/6/2018

Revenue 7 38.419.425 34.859.797

Cost of sales 8 (31.965.620) (30.511.643)

Gross profit 6.453.805 4.348.154

Other income 558.596 696.339

Selling and distribution expenses (2.270.856) (1.997.520)

Administrative expenses (2.016.145) (1.750.046)

Research and development expenses (280.032) (238.090)

Other expenses (284.455) (439.986)

+ Depreciation & amorisation 1.723.326 2.103.432

EBITDA 3.884.239 2.722.283

- Depreciation & amorisation (1.723.326) (2.103.432)

EBIT 2.160.914 618.850

Financial income 14.018 2.345

Financial expenses (638.409) (621.535)

Net finance costs (624.391) (619.190)

Profits / (losses) before taxes 1.536.522 (339)

Income tax expense 10 (136.893) 38.318

Profits / (losses) after taxes for the period 1.399.630 37.978

Profits / (losses) attributable to: Owners of the Parent Company 1.399.336 4.311

Non-controlling interests 293 33.667

1.399.630 37.978



15

Company’s Income Statement

The Income Statement of the Company for the period 1/1 - 30/06/2019 and the respective comparative figures of the previous period are the following: THE COMPANY

Note 30/6/2019 30/6/2018

Revenue 7 18.834.194 18.014.816

Cost of sales 8 (15.509.929) (15.877.681)

Gross profit 3.324.265 2.137.135

Other income 235.218 406.177

Selling and distribution expenses (1.444.971) (1.271.420)

Administrative expenses (1.119.265) (1.024.843)

Research and development expenses (280.032) (238.090)

Other expenses (46.109) (124.672)

Non-recurring expenses 0 (35.000)

+ Depreciation & amorisation 1.147.167 1.536.504

EBITDA 1.816.273 1.385.792

- Depreciation & amorisation (1.147.167) (1.536.504)

EBIT 669.107 (150.712)

Financial income 13.995 41.765

Financial expenses (414.967) (440.568)

Net finance costs (400.972) (398.803)

Profits / (losses) before taxes 268.135 (549.516)

Income tax expense 10 58.802 117.715

Profits / (losses) after taxes for the period 326.936 (431.801)



16

Consolidated Statement of Comprehensive Income

The Statement of Comprehensive Income of the Group for the period 1/1 - 30/06/2019 and the respective comparative figures of the previous period are the following: THE GROUP

Note 30/6/2019 30/6/2018

Profits after taxes 1.399.630 37.978

Other comprehensive income

Items that will never be reclassified to profit or loss

Revaluation of property, plant and equipment 4 (554.829) 0

Related tax 138.707 0

(416.122) 0

Items that are or may be reclassified to profit or loss

Foreign operations - foreign currency translation differences

11 (344.808) 12.371

(344.808) 12.371

Other comprehensive income, net of tax (760.930) 12.371

Total comprehensive income 638.700 50.350

Total comprehensive income attributable to:

Owners of the Parent Company 637.967 6.846

Non-controlling interests 733 43.503

638.700 50.350

The accompanying explanatory notes constitute an integral part of the presented financial statements.


17

Company’s Statement of Comprehensive Income

The Statement of Comprehensive Income of the Company for the period 1/1 - 30/06/2019 and the respective comparative figures of the previous period are the following: THE COMPANY

Note 30/6/2019 30/6/2018

Profits / (Losses) after taxes 326.936 (431.801)

Other comprehensive income

Items that will never be reclassified to profit or loss

Revaluation of property, plant and equipment 4 (554.829) 0

Related tax 138.707 0

(416.122) 0

Other comprehensive income, net of tax (416.122) 0

Total comprehensive income (89.185) (431.801)

The accompanying explanatory notes constitute an integral part of the presented financial statements.


18

Consolidated Statement of Changes in Equity

The Statement of Changes in Equity of the Group is the following:

THE GROUP For the period ended 30 June 2019

Attributable to owners of the Company

Share capital

Share premium

Translation and other reserves

Revaluation reserve

IAS 19 reserve

Retained earnings

Total Non-

controlling interest

Total equity

Balance at 31 December 2018 12.758.592 13.805.791 (1.883.468) 16.224.969 (153.652) (867.435) 39.884.798 290.609 40.175.407

Profits / (losses) 0 0 0 0 0 1.399.336 1.399.336 293 1.399.630

Other comprehensive income 0 0 (345.248) (416.122) 0 0 (761.369) 440 (760.930)

Total comprehensive income 0 0 (345.248) (416.122) 0 1.399.336 637.967 733 638.700

Balance at 30 June 2019 12.758.592 13.805.791 (2.228.716) 15.808.847 (153.652) 531.901 40.522.764 291.342 40.814.106

THE GROUP For the period ended 30 June 2018

Attributable to owners of the Company

Share capital

Share premium

Translation and other reserves

Revaluation reserve

IAS 19 reserve

Retained earnings

Total Non-

controlling interest

Total equity

Balance at 31 December 2017 (As previously reported)

12.758.592 13.805.791 (1.885.057) 16.650.720 (155.644) 5.945.224 47.119.625 677.742 47.797.367

Adjustment on application of IFRS 15 0 0 (358) 0 0 64.086 63.728 130 63.858

Adjustment on application of IFRS 9 0 0 1.918 0 0 (255.569) (253.652) (699) (254.350)

Balance at 1 January 2018 (Restated)

12.758.592 13.805.791 (1.883.497) 16.650.720 (155.644) 5.753.741 46.929.702 677.174 47.606.876

Profits / (losses) 0 0 0 0 0 4.311 4.311 33.667 37.978

Other comprehensive income 0 0 2.535 0 0 0 2.535 9.836 12.371

Total comprehensive income 0 0 2.535 0 0 4.311 6.846 43.503 50.350

Reduction of share capital 0 0 0 0 0 0 0 (270) (270)

Distribution of dividends 0 0 0 0 0 (2.057.837) (2.057.837) (40.052) (2.097.889)

Balance at 30 June 2018 12.758.592 13.805.791 (1.880.962) 16.650.720 (155.644) 3.700.214 44.878.710 680.355 45.559.066



19

Company’s statement of changes in equity

The statement of changes in equity of the Company is the following:

THE COMPANY For the period ended 30 June 2019

Share capital

Share premium

Revaluation reserve

IAS 19 reserve

Other reserve Retained earnings

Total

Balance at 31 December 2018 12.758.592 13.805.791 5.813.820 (153.652) 7.707.254 (4.329.736) 35.602.069

Profits / (losses) 0 0 0 0 0 326.936 326.936

Other comprehensive income 0 0 (416.122) 0 0 0 (416.122)

Total comprehensive income 0 0 (416.122) 0 0 326.936 (89.185)

Balance at 30 June 2019 12.758.592 13.805.791 5.397.698 (153.652) 7.707.254 (4.002.800) 35.512.883

THE COMPANY For the period ended 30 June 2018

Share capital

Share premium

Revaluation reserve

IAS 19 reserve

Other reserve Retained earnings

Total

Balance at 31 December 2017 (As previously reported)

12.758.592 13.805.791 5.614.730 (155.644) 7.707.254 2.396.173 42.126.896

Adjustment on application of IFRS 15 0 0 0 0 0 50.839 50.839

Adjustment on application of IFRS 9 0 0 0 0 0 (172.992) (172.992)

Balance at 1 January 2018 (Restated)

12.758.592 13.805.791 5.614.730 (155.644) 7.707.254 2.274.021 42.004.743

Profits / (losses) 0 0 0 0 0 (431.801) (431.801)

Total comprehensive income 0 0 0 0 0 (431.801) (431.801)

Distribution of dividends 0 0 0 0 0 (2.057.837) (2.057.837)

Balance at 30 June 2018 12.758.592 13.805.791 5.614.730 (155.644) 7.707.254 (215.618) 39.515.105



20

Consolidated Statement of Cash Flows

Cash flows of the Group for the period 1/1 - 30/06/2019 and the respective comparative figures of the previous period are the following:

THE GROUP

30/6/2019 30/6/2018

Cash flows from operating activities Profits / (Losses) before taxes 1.536.522 (339)

Adjustments for:

– Depreciation & amortisation 1.723.326 2.103.432

– Net finance cost 624.391 619.190 – Gain on sale of property, plant and equipment (1.057) (21.725) – Foreign exchange differences included in EBIT 2.413 443 – Change in long-term employee benefits & provisions 16.827 12.678

– Other (917) (95.439)

3.901.505 2.618.241

Changes in working capital:

Inventories (2.128.906) (376.320)

Trade, other receivables and contract assets (1.045.149) (877.551)

Trade, other payables and contract liabilites 434.294 4.871.982

Cash generated from operating activities 1.161.743 6.236.352

Taxes paid (6.664) (16.343)

Interest paid (473.934) (592.287)

Net cash from (used in) operating activities 681.145 5.627.721

Cash flows from investment activities

Interest received 13.997 96 Proceeds from sale of property, plant and equipment 32.400 13.762

Acquisition of property, plant and equipment & intangible assets (1.562.487) (705.214)

Acquisition of other investments (2.513.305) 0

Net cash from (used in) investing activities (4.029.395) (691.356)

Cash flows from financing activities

Proceeds from loans & borrowings 17.074.512 15.803.059

Payment of loans (17.581.717) (16.074.307)

Payment of finance lease liabilities (504.468) (495.711)

Dividends paid to non-controlling interest 0 (637.404)

Dividends paid to owners of the Company 0 (1.456.805)

Net cash from (used in) financing activities (1.011.672) (2.861.167)

Net increase (decrease) in cash and cash equivalents (4.359.921) 2.075.198

Cash and cash equivalents at 1 January 5.944.584 2.067.396

Effect of movements in exchange rates on cash held (7.793) 13.903

Cash and cash equivalents at 30 June 1.576.870 4.156.497



21

Company’s statement of Cash Flows

Cash flows of the Company for the period 1/1 - 30/06/2019 and the respective comparative figures of the previous period are the following:

THE COMPANY

30/6/2019 30/6/2018

Cash flows from operating activities Profits / (Losses) before taxes 268.135 (549.516)

Adjustments for:

– Depreciation & amortisation 1.147.167 1.536.504

– Net finance cost 400.972 398.803 – Gain on sale of property, plant and equipment (1.057) (8.943)

– Change in long-term employee benefits & provisions 16.827 12.678

– Other 24.805 (16.919)

1.856.848 1.372.609

Changes in working capital:

Inventories (808.270) (807.766)

Trade, other receivables and contract assets (347.673) (208.963)

Trade, other payables and contract liabilites 82.800 3.019.508

Cash generated from operating activities 783.705 3.375.388

Taxes paid 0 0

Interest paid (255.088) (412.008)

Net cash from (used in) operating activities 528.617 2.963.379

Cash flows from investment activities

Interest received 17.535 56

Dividend received 0 39.900

Proceeds from sale of property, plant and equipment 32.400 1.000

Proceeds from decrease of share capital of subsidiaries 0 299.730

Acquisition of property, plant and equipment & intangible assets (699.388) (414.068)

Net cash from (used in) investing activities (649.453) (73.383)

Cash flows from financing activities

Proceeds from loans & borrowings 0 700.000

Payment of loans (3.700.000) 0

Payment of finance lease liabilities (305.306) (346.716)

Dividends paid to non-controlling interest 0 (597.352)

Dividends paid to owners of the Company 0 (1.456.805)

Net cash from (used in) financing activities (4.005.306) (1.700.873)

Net increase (decrease) in cash and cash equivalents (4.126.142) 1.189.123

Cash and cash equivalents at 1 January 5.183.007 1.148.246

Cash and cash equivalents at 30 June 1.056.865 2.337.369



22

Notes to the Financial Statements

1. Reporting entity

The Group INFORM LYKOS is a fast growing Group of companies, forming the market in the business area of Information Management under the brand INFORM. Nowadays, the Group is activated internationally and is leader in the area of printing management, shaping developments in the printing market, but also in the market of digital security data management, information and applications. The registered office of the parent company Inform P. Lykos S.A. (the Company) is in Koropi Attica, 5th km. of Varis-Koropiou Avenue. Since 12/03/2014, the financial statements of the Group are included in the consolidated financial statements of AUSTRIACARD AG, with its headquarters in Austria. The Group AUSTRIACARD AG is an international group, active in the business areas of “Digital Security” under the brand AUSTRIACARD and “Information Management” under the brand INFORM. The Board of Directors approved the present financial statements on 26/9/2019.

2. Basis of accounting

The accompanying separate and consolidated financial statements (hereinafter “financial statements”), have been prepared by the Management based on historic cost principal, as modified following the adjustment of certain assets and liabilities at fair values through the results and the going concern principle and are in accordance with the International Financial Reporting Standards (hereinafter “IFRS”) and the International Accounting Standards (hereinafter “IAS”), as adopted by the European Union (according to the Regulation (EC) No. 1606/ 2002 of the European Parliament and the Council of the European Union at July 19th, 2002) and published by the International Accounting Standards Board (IASB), and also their interpretations, as published by the International Financial Reporting Interpretation Committee (I.F.R.I.C.) of the IASB. The period of application of each IAS/IFRS is set by the relative regulations published by the competent commission of the European Union. The accompanying interim condensed financial statements were prepared under the same accounting policies and methods of calculation as those applied for the preparation of the annual financial statements as of 31/12/2018, apart from the changes arising following the adoption of new or revised IAS - IFRS or Interpretations that are effective on or after January 1st 2019. The aforementioned changes are described in the note 29.

3. Functional and presentation currency

The consolidated and separate financial statements are presented in euro, which is the functional currency of the Company. All amounts have been rounded to the nearest unit euro (without decimals), unless otherwise indicated.

4. Use of judgements and estimates

In preparing these consolidated financial statements, management has made judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the published amounts of assets, liabilities, income and expenses, as also and the notes to the financial statements. They also affect disclosures of contingent receivables and liabilities as at the financial statements preparation date, as well as the publicized amounts of revenues and expenses. Judgments, estimates and assumptions are based on the experience from previous years and other factors, included the expectations of future events that are considered reasonable under the particular conditions, while estimates and underlying assumptions are revaluated on an ongoing basis, making the best use of all the available data. Actual results may differ from these estimates. Significant judgments and estimates used by the Group under the preparation of the presented interim financial statements are the same as the ones used under the preparation of the previous year annual financial statements. Fair value measurement

As part of the implementation of IFRS, the Group has an obligation or option to revalue assets and liabilities at fair value. The fair value measurement is based on the market and not on a particular entity. For certain assets and liabilities may be available observable market transactions or market information. For other assets and liabilities may not be available observable market transactions or market information. However, the objective of measuring fair value is the same in both cases to estimate the price at which it would take place a normal transaction to sell the asset or transfer the liability between market participants at the measurement date under current market conditions (ie an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). Even when there is no observable market to provide pricing information on the sale of an asset or transfer a liability at the measurement date, the fair value measurement should consider that a transaction occurs on that date, considering the transaction from the perspective of a market participant that holds the asset or owes the liability. This alleged transaction constitutes the basis for valuation of the sale price of the asset or transfer the liability. Especially for liabilities if no observable market to provide valuation information on the transfer of a liability (ie when the contractual and other legal restrictions prevent the transfer of such data) may be observable market for such obligation if the other party holds as an asset (ie corporate bonds).


23

The assets and liabilities of the Group measured at fair value are mainly non-financial assets, in particular, real estate items, owned and used by the Group (self-owned and investment property) are monitored at fair value by using measurement techniques and are analytically presented in the relative Notes to the financial statements for the year ended as at December 31, 2018 (14 (B) and 15 (B)). Land and buildings used for production in Greece

During the reporting period and following a decision by the Board of Directors on the segregation of the company's productive sector, a study was conducted by an independent evaluator based on market indications related to similar properties, incorporating adjustments for valuation specific factors such as size of land and buildings, use, location and any encumbrances. The basis for calculating the valuation depends on observable transactions for similar properties. The last revaluation took place in June 2019. The most significant revaluation data is the fair value of the land per square meter which was valued at € 179 weighted average and the replacement cost per square meter which was valued at € 318 weighted average (see note 12). Customer contracts As part of the acquisition of the business activity referred to in note 13, the Group acquired costumer contracts mainly with Banks, Insurance Companies, Telecommunications Companies of the Romanian Market. The fair value for the customer contracts amounting to € 2.694.806, is recognized with the income approach, in the particular multi - period excess earnings method. Following the initial recognition, the Group measures the above assets at cost less any accumulated amortisation and any assets accumulated impairment losses. The useful life of them is the period over which the Group receives future financial benefits from such assets and amounts to 15 years.

5. Operating segments

The Group maintains one strategic segment, the “Information Management” (printing segment), which is its reportable segment. Every unit of the segment offers same products and services, requires and uses the same technology and the same or similar marketing strategies. The activity of the printing segment mainly extents geographically in two countries Greece and Romania. This geographic allocation is the designated factor for the segmentation of printing segment. These operating segments are monitored by the Head of Business and Strategic decisions making of the Group (Group CEO). Information related to each reportable segment is set out below. Segment “profit before tax” is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments.

30/6/2019 Printing segment (Greece)

Printing segment

(Romania)

Other segments

Intragroup eliminations

Total

Revenues 18.081.788 19.903.094 434.543 0 38.419.425

Intersegment revenues 752.406 1.566.938 0 (2.319.344) 0

Segment revenues 18.834.194 21.470.031 434.543 (2.319.344) 38.419.425

Cost of sales (15.509.929) (18.136.674) (430.780) 2.111.763 (31.965.620)

Gross profit 3.324.265 3.333.358 3.763 (207.581) 6.453.805

16,8% Other income 235.218 377.978 43.108 (97.708) 558.596

Selling and distribution expenses (1.444.971) (933.417) 0 107.532 (2.270.856)

Administrative expenses (1.119.265) (996.562) (58.380) 158.062 (2.016.145)

Research and development expenses (280.032) 0 0 0 (280.032)

Other expenses (46.109) (276.237) (1.804) 39.694 (284.455)

+ Depreciation & amortization 1.147.167 523.268 52.891 0 1.723.326

EBITDA 1.816.273 2.028.389 39.578 (1) 3.884.239

- Depreciation & amortization (1.147.167) (523.268) (52.891) 0 (1.723.326)

EBIT 669.107 1.505.121 (13.313) (1) 2.160.914

Financial income 13.995 21 455.273 (455.270) 14.018

Financial expenses (414.967) (221.130) (2.312) 0 (638.409)

Net finance costs (400.972) (221.109) 452.960 (455.270) (624.391)

Profit / (loss) before tax 268.135 1.284.011 439.648 (455.271) 1.536.522

Income tax expense 58.802 (205.448) 9.754 0 (136.893)

Profit / (loss) 326.936 1.078.563 449.401 (455.271) 1.399.630


24


Printing segment

(Romania)

Other segments


Total

Revenues 17.839.531 16.677.296 342.970 0 34.859.797

Intersegment revenues 175.285 1.239.256 0 (1.414.541) 0

Segment revenues 18.014.816 17.916.552 342.970 (1.414.541) 34.859.797

Cost of sales (15.877.681) (15.734.917) (276.380) 1.377.334 (30.511.643)

Gross profit 2.137.135 2.181.636 66.590 (37.207) 4.348.154

12,5% Other income 406.177 450.761 43.653 (204.253) 696.339

Selling and distribution expenses (1.271.420) (813.450) 0 87.350 (1.997.520)

Administrative expenses (1.024.843) (765.298) (56.471) 96.566 (1.750.046)

Research and development expenses (238.090) 0 0 0 (238.090)

Other expenses (159.672) (371.857) (5.845) 97.388 (439.987)

+ Depreciation & amortization 1.536.504 516.274 50.654 0 2.103.432

EBITDA 1.385.792 1.198.067 98.580 39.844 2.722.283

- Depreciation & amortization (1.536.504) (516.274) (50.654) 0 (2.103.432)

EBIT (150.712) 681.792 47.927 39.844 618.850

Financial income 41.765 10 957.418 (996.849) 2.345

Financial expenses (440.568) (178.713) (2.253) 0 (621.535)

Net finance costs (398.803) (178.703) 955.165 (996.849) (619.190)

Profit / (loss) before tax (549.516) 503.089 1.003.092 (957.005) (339)

Income tax expense 117.715 (80.536) 1.139 0 38.318

Profit / (loss) (431.801) 422.554 1.004.230 (957.005) 37.978

The allocation of assets, liabilities, capital expenditure and depreciation to operating segments is as follows:


Printing segment

(Romania)

Other segments


Total

Assets 56.931.962 40.964.930 2.558.159 (21.670.771) 78.784.280

Liabilities 21.419.079 17.510.531 714.345 (1.673.781) 37.970.174

Capital expenditures (1/1-30/6/2019) 699.388 4.786.102 45.803 0 5.531.293

Depreciation (1/1-30/6/2019) 1.147.167 523.268 52.891 0 1.723.326


Printing segment

(Romania)

Other segments


Total

Assets 60.738.766 34.732.974 1.997.963 (20.560.490) 76.909.213

Liabilities 25.136.697 11.554.780 605.829 (563.500) 36.733.806

Capital expenditures (1/1-30/6/2018) 699.141 297.819 894 0 997.854

Depreciation (1/1-30/6/2018) 1.536.504 516.274 50.654 0 2.103.432

6. Seasonality or cyclicality of interim business operations

The Group sales do not record significant seasonality and, therefore, are mainly equally allocated within the two semesters of the year. Furthermore, there is no indication of changes to assets, liabilities, equity, profit or cash flows caused by the unusual events regarding nature or size.

7. Revenues

A. Revenues by category

THE GROUP THE COMPANY

30/6/2019 30/6/2018 30/6/2019 30/6/2018

Sales of goods 17.990.198 12.849.464 8.850.735 5.815.512

Rendering of services 13.052.848 11.906.663 3.415.717 2.761.616


25

Sales of merchandise 7.376.379 10.103.671 6.567.743 9.437.688

Total 38.419.425 34.859.797 18.834.194 18.014.816

B. Revenues by geographical region THE GROUP THE COMPANY

30/6/2019 30/6/2018 30/6/2019 30/6/2018

West Europe 910.717 1.363.726 886.690 1.281.596

Central & Eastern Europe 32.263.462 33.151.420 14.552.052 16.388.569

Asia & Africa 5.245.247 344.651 3.395.452 344.651

Total 38.419.425 34.859.797 18.834.194 18.014.816 Sales in the current period increased mainly due to the project of the production of Nigerian security ballot.

8. Cost of sales


30/6/2019 30/6/2018 30/6/2019 30/6/2018

Employee compensation and expenses 2.770.046 2.292.702 1.570.128 1.368.928

Cost of inventories recognized as expense 10.752.796 7.177.432 4.678.949 2.499.645

Cost of services 10.283.987 9.318.187 1.591.885 1.068.855

Cost of merchandise 4.410.008 7.877.722 5.373.162 8.388.719

Third party fees 592.535 285.448 212.011 135.334

Utilities and maintenance expenses 850.124 771.653 560.540 489.143

Rentals from property and machinery 63.817 43.834 61.578 41.637

Tax and duties 47.104 41.260 20.242 20.886

Transportation expenses 2.644 6.492 2.890 6.532

Other consumable materials 750.800 786.300 498.383 488.485

Depreciation and amortisation 1.302.822 1.775.793 822.155 1.252.459

Other expenses 138.936 134.820 118.007 117.057

Total 31.965.620 30.511.643 15.509.929 15.877.681

Cost of sales increased mainly due to the project of the production of Nigerian security ballot.

9. Earnings / (losses) per share

A. Basic earnings or basic losses per share

All shares are ordinary (see note 18). The calculation of earnings / (losses) per share is based on the following earnings / (losses) per share attributable to the ordinary shareholders and the weighted average number of ordinary outstanding shares. THE GROUP

30/6/2019 30/6/2018

Profits / (losses) for the year, attributable to the owners of the Company

1.399.336 4.311

B. Weighted average number of ordinary shares

2019 2018

Issued ordinary shares at 1 January 20.578.374 20.578.374

Weighted-average of ordinary shares at 30 June 20.578.374 20.578.374

C. Earnings per share

2019 2018

Profit / (loss) per share 0,0680 0,0002


26

10. Income taxes


30/6/2019 30/6/2018 30/6/2019 30/6/2018

Current tax expense Current year income tax (768) (7.778) 0 0

(768) (7.778) 0 0

Deferred taxation Origination and reversal of temporary differences (136.125) 46.095 58.802 117.715

(136.125) 46.095 58.802 117.715

Total (136.893) 38.318 58.802 117.715

11. Foreign currency translation differences arising from conversion of foreign operations financial statements

Foreign currency translation differences amounting to (€ 344.808), recognized in OCI for the period 1/1 - 30/06/2019 (1/1 - 30/6/2018: € -12.371) mainly pertain to foreign currency translation differences arising from conversion of the financial statements of the Group subsidiaries in Romania (“Inform Lykos S.A.” and “Compaper Converting S.A.”) from functional currency to the financial statements presentation currency (Euro).

12. Property, plant and equipment

A. Changes within the period

THE GROUP

Land and buildings

Plant and equipment

Fixtures and fittings

Under construction Total

Cost

Balance at 1 January 2018 52.077.545 48.612.295 6.284.955 32.181 107.006.977 Additions 47.946 647.720 138.111 203.728 1.037.505 Disposals 0 (114.254) (9.800) (32.400) (156.454)

Reclassifications 0 84.844 0 (84.844) 0

Effect of movements in exchange rates (17.570) 17.117 3.667 (1) 3.213

Balance at 31 December 2018 52.107.921 49.247.721 6.416.933 118.665 107.891.240

Balance at 1 January 2019 52.107.921 49.247.721 6.416.933 118.665 107.891.240 Additions 19.357 1.665.567 63.975 484.741 2.233.640 Disposals 0 (32.400) 0 (8.081) (40.481)

Revaluation (554.829) 0 0 0 (554.829)

Reclassifications 0 411.687 0 (411.687) 0

Effect of movements in exchange rates (293.162) (182.009) (3.208) (1.314) (479.693)

Balance at 30 June 2019 51.279.286 51.110.566 6.477.700 182.324 109.049.876

Accumulated depreciation and impairment losses

Balance at 1 January 2018 18.530.444 26.930.620 5.700.858 0 51.161.923 Depreciation 522.066 2.987.747 177.022 0 3.686.835 Disposals 0 (137.221) (6.276) 0 (143.497)

Impairment 0 6.603.352 0 0 6.603.352

Effect of movements in exchange rates (1.884) 9.550 2.471 0 10.137

Balance at 31 December 2018 19.050.626 36.394.048 5.874.076 0 61.318.750

Balance at 1 January 2019 19.050.626 36.394.048 5.874.076 0 61.318.750 Depreciation 259.057 1.051.143 89.623 0 1.399.823 Disposals 0 (457) 0 0 (457)

Effect of movements in exchange rates (27.197) (117.032) (2.208) 0 (146.438)

Balance at 30 June 2019 19.282.485 37.327.703 5.961.490 0 62.571.678

Carrying amounts

Balance at 31 December 2018 33.057.295 12.853.673 542.857 118.665 46.572.490

Balance at 30 June 2019 31.996.801 13.782.863 516.210 182.324 46.478.199


27

THE COMPANY

Land and buildings

Plant and equipment

Fixtures and fittings

Under construction Total

Cost

Balance at 1 January 2018 32.566.464 32.592.261 5.314.604 31.300 70.504.629 Additions 44.930 307.985 105.353 0 458.268 Disposals 0 (27.943) (2.682) 0 (30.625)

Balance at 31 December 2018 32.611.395 32.872.303 5.417.275 31.300 70.932.273

Balance at 1 January 2019 32.611.395 32.872.303 5.417.275 31.300 70.932.273 Additions 19.357 386.164 49.761 0 455.282 Disposals 0 (32.400) 0 0 (32.400)

Revaluation (554.829) 0 0 0 (554.829)

Balance at 30 June 2019 32.075.923 33.226.067 5.467.036 31.300 70.800.325

Accumulated depreciation and impairment losses

Balance at 1 January 2018 16.897.234 18.493.312 4.834.244 0 40.224.790 Depreciation 336.577 2.083.539 158.313 0 2.578.428 Disposals 0 (26.276) (2.682) 0 (28.958)

Impairment 0 5.100.000 0 0 5.100.000


Balance at 1 January 2019 17.233.811 25.650.575 4.989.874 0 47.874.260 Depreciation 167.813 625.601 78.766 0 872.181 Disposals 0 (457) 0 0 (457)

Balance at 30 June 2019 17.401.624 26.275.719 5.068.640 0 48.745.984

Carrying amounts

Balance at 31 December 2018 15.377.584 7.221.728 427.401 31.300 23.058.013

Balance at 30 June 2019 14.674.298 6.950.348 398.395 31.300 22.054.342

B. Leased machinery

The Group leases machinery in Greece and Romania. At 30/6/2019 the net carrying amount of leased equipment was € 4.354.167 (2018: € 4.069.911). The value of the leased equipment is ensuring the relevant leasing obligations.

C. Assets with rights of use

The Group leases assets with rights of use (mainly means of transport) in Greece and Romania. Their value amounts to € 425.306 on 30/6/2019 (first application of IFRS 16) and is a guarantee of the related leasing liabilities.

D. Guarantees

There are encumbrances on the Group's fixed assets for an amount of € 5,2 million in order to cover loan liabilities. There are no encumbrances on the parent company's fixed assets.

13. Intangible assets and goodwill

The changes to the Group intangible assets values for the period as follows:

THE GROUP

Goodwill

Software, Patents, licenses

Development costs

Customer contracts

Total

Cost

Balance at 1 January 2018 6.103.881 11.681.571 2.621.449 0 20.406.901

Additions 0 347.790 0 0 347.790

Acquisitions - internally developed 0 141.423 205.679 0 347.102

Effect of movements in exchange rates 0 (1.367) 0 0 (1.367)



Additions 0 197.312 0 0 197.312

Acquisition of business activity* 236.363 0 0 2.694.806 2.931.169

Acquisitions - internally developed 0 94.813 74.358 0 169.172

Effect of movements in exchange rates 0 (25.136) (604) 0 (25.741)


28

Balance at 30 June 2019 6.340.244 12.436.407 2.900.882 2.694.806 24.372.339

Accumulated amortisation and impairment losses


Amortisation 0 360.318 207.468 0 567.785




Amortisation 0 225.183 98.320 0 323.503


Balance at 30 June 2019 4.017.437 10.961.037 2.381.338 0 17.359.811

Carrying amounts

Balance at 31 December 2018 2.086.444 1.409.667 544.088 0 4.040.198

Balance at 30 June 2019 2.322.806 1.475.371 519.545 2.694.806 7.012.528

*During the current period, the Group, through its subsidiary Inform Romania, acquired the business activity of the Romanian Star Storage (business unit). The business relates to digital printing and distribution of accounts to banks, insurance companies, telecommunications companies etc. and involves the transfer of customer contracts, know-how, employees and equipment that serves that activity. The acquisition price for the transfer of business amounted to Euro 2,5 million. The above acquisition of the business resulted in goodwill calculated as follows:

Customer contracts 2.694.806

Minus Deferred tax liability (431.169)

Total net asset value 2.263.637

Value of business activity’s acquisition 2.500.000

Goodwill 236.363

THE COMPANY

Software, Patents, licenses

Development costs Total

Cost

Balance at 1 January 2018 7.801.141 2.621.449 10.422.590

Additions 247.613 0 247.613

Acquisitions - internally developed 141.423 165.485 306.908

Balance at 31 December 2018 8.190.177 2.786.934 10.977.111


Additions 105.965 0 105.965

Acquisitions - internally developed 94.813 43.328 138.141

Balance at 30 June 2019 8.390.955 2.830.262 11.221.217

Accumulated amortisation and impairment losses Balance at 1 January 2018 6.541.424 2.075.577 8.617.001

Amortisation 317.716 205.644 523.360

Balance at 31 December 2018 6.859.140 2.281.221 9.140.361


Amortisation 180.316 94.670 274.986

Balance at 30 June 2019 7.039.455 2.375.891 9.415.347

Carrying amounts

Balance at 31 December 2018 1.331.037 505.714 1.836.751

Balance at 30 June 2019 1.351.500 454.371 1.805.871


29

14. Inventory


30/6/2019 31/12/2018 30/6/2019 31/12/2018

Raw materials and consumables 6.034.746 3.846.667 2.614.359 2.096.713

Work in progress 25.638 8.224 0 0

Finished and semi-finished goods 485.569 273.216 52.584 58.993

Merchandise 841.677 631.031 764.673 652.643

Prepayments for inventory purchase 897.130 1.396.715 519.877 334.874

Total 8.284.760 6.155.854 3.951.493 3.143.223

15. Contract assets


30/6/2019 31/12/2018 30/6/2019 31/12/2018

Contract assets 1.192.390 1.177.574 704.422 682.156

Total 1.192.390 1.177.574 704.422 682.156

16. Trade receivables


30/6/2019 31/12/2018 30/6/2019 31/12/2018

Trade receivables 12.660.377 11.787.671 4.445.605 4.227.689

Minus: Allowance for doubtful accounts (1.075.393) (1.096.308) (822.597) (822.597)

Total trade receivables 11.584.984 10.691.363 3.623.007 3.405.092

Trade receivables due from related parties 439.676 332.303 259.011 155.669

Total trade receivables due from related parties 439.676 332.303 259.011 155.669

17. Cash and cash equivalents


30/6/2019 31/12/2018 30/6/2019 31/12/2018

Cash at hand 13.186 7.727 9.703 5.273

Short term bank balances 1.563.684 5.936.857 1.047.162 5.177.734

Total 1.576.870 5.944.584 1.056.865 5.183.007

The Group does not hold deposits pledged to secure any obligation.

18. Share capital and share premium

The Company's share is freely traded on the Athens Stock Exchange and participates in the business support services industry and in the Mid & Small Cap Price index. The share premium of the Group and the Company comes from previous issuing of shares for cash at a value higher than their nominal value. The share capital concerns exclusively ordinary shares, fully settled. In the Company's shares are not included shares with revoke right or

preference shares. Moreover, the Company has not issued any bonds or other securities convertible into shares.

Within the period 1/1 - 30/6/2019, there was no change in the Company's share capital.


30

19. Loans and borrowings


30/6/2019 31/12/2018 30/6/2019 31/12/2018

Non-current liabilities

Secured bank loans 2.096.180 0 0 0

Unsecured bank loans 5.300.000 9.000.000 5.300.000 9.000.000

Bond loans 6.000.000 6.000.000 6.000.000 6.000.000

Finance lease liabilities 3.939.115 3.119.192 2.498.369 2.310.308

17.335.294 18.119.192 13.798.369 17.310.308

Current liabilities

Secured bank loans 2.911.357 1.838.217 0 0

Finance lease liabilities 840.359 950.719 454.908 760.214

3.751.716 2.788.936 454.908 760.214

The terms and conditions of Group’s and Company’s loans are as follows:

Lender/Bank Currency

Nominal interest

rate Year of

maturity Pledge type Carrying amount

Secured bank loans 5.007.537

RON Robor

3m+3% 2019

Mortgage on Land and Building

140.792

RON Robor

3m+2,6% 2019

Mortgage on Land and Building

2.353.898

EUR Robor

3m+2,9% 2024

Plegde on receivables

2.512.846

Unsecured bank loans 5.300.000

EUR Euribor

1m+3,8% 2020 - 3.300.000

EUR Euribor

6m+3,9% 2021 - 2.000.000

Bonds 6.000.000

EUR Euribor

3m+3,8% 2020 6.000.000

Finance lease liabilities 4.779.473

EUR 6% 2021 Pledge on leased equipment

540.904


340.016


1.427.205

EUR 5,2% 2024 Pledge on leased equipment

383.042


896.809


740.551

EUR 0,0% 2020 2.002

EUR Variable 2024 23.638

IFRS 16 less than 1 year 132.735

more than 1 year 292.570

21.087.011


31

20. Trade payables


30/6/2019 31/12/2018 30/6/2019 31/12/2018

Trade payables 10.886.810 11.813.198 3.167.816 3.755.518

Accrued expenses 1.105.432 50.806 0 0

Trade payables 11.992.242 11.864.004 3.167.816 3.755.518

Τrade payables due to related parties 1.032.467 357.201 2.064.702 787.237

Trade payables due to related parties 1.032.467 357.201 2.064.702 787.237

21. Contract liabilities


30/6/2019 31/12/2018 30/6/2019 31/12/2018

Contract liabilities 83.063 629.126 55.100 569.362

Total 83.063 629.126 55.100 569.362

22. Group composition

Set out below a list of all subsidiaries country, participation percentage, consolidation method and participation relation of incorporated subsidiaries the Group as at 30/06/2019:

Company Country Participation percentage

Consolidation method

Participation relationship

Inform P. Lykos S.A. Greece Parent - Parent

Lykos Paperless Solutions S.A. Greece 99,91% Full Direct

Terrane L.T.D. Cyprus 100,00% Full Direct

Inform Lykos (Romania) L.T.D. Cyprus 100,00% Full Indirect

Inform Lykos S.A. Romania 99,99% Full Indirect

Compaper Converting S.A. Romania 97,44% Full Indirect

Inform Albania Sh.p.k. Austria 75,50% Full Direct

23. Non - controlling interests (NCI)

Group does not include subsidiary with material non-controlling interest.

24. Dividend distribution

No dividends were paid during the presented period.

25. Commitments

The Group has not entered into important commitments apart from those mentioned in subsections (loans, finance lease contracts etc.).

26. Contingencies

In 2016, the Competition Council of Romania imposed a fine of approximately € 800 thousand on the subsidiary of the Group, Inform Lykos, S.A., (ILR), in Romania. As the management is convinced that the Group has complied with the competition law and that the verdict is unjustified and disproportional, it has appealed against this verdict. In 2017, the Court of Appeals rejected the demands made by the company. In response to this verdict, the company appealed to the Romanian Supreme Court. The first hearing is scheduled for 5 November 2020. Consequently, at the date of this report, the lawsuit is still ongoing. Taking into account similar cases of other companies, the Group's Management estimates that ILR will pay a fine that will be significantly lower than the original verdict. Within the framework of conservatism principle, the Management formed in 2016 a relevant provision of € 300 thousand for this claim, which is included in the consolidated financial statements. Besides the aforementioned case, there are no other judicial or legal claims that are expected to affect significantly the financial position of the company as at 30/06/2019. For the Greek companies of the Group, for the years 2011-2013, an unqualified conclusion tax compliance certificate has been issued in accordance with the provisions of Article 82, par. 5, of Law 2238/1994. For the years 2014-2017, a respective unqualified conclusion tax compliance certificate has been issued in accordance with the provisions of article 65a of law 4174/2013. The tax audit for the year 2018 is in progress and is expected to be completed without substantial tax burdening. Regarding subsidiaries and related companies, they have not been tax inspected by tax authorities for the years, presented below, and therefore,


32

their tax liabilities in respect of these years have not been finalized:

Company Domicile Tax

unaudited years

Inform P. Lykos S.A. Greece 2018

Lykos Paperless Solutions S.A. Greece 2018

Terrane Ltd Cyprus 2013-2018

Infrom Lykos (Romania) Ltd Cyprus 2013-2018

Infrom Lykos S.A. Romania 2005-2019

Compaper Converting S.A. Romania 2005-2019

Inform Albania Sh.p.k. Albania 2011-2019

Apart from the aforementioned, there are no other cases of contingent liabilities or contingent receivables, which could significantly affect the Group or the Company financial position or operation.

Encumbrances

There are encumbrances on the Group's fixed assets with value of € 5,2 million in order to cover loan obligations. There are no encumbrances on the parent company's fixed assets.

27. Related parties

The operational and investment activity of the Group creates certain earnings, assets or liabilities that concern except others related companies or individuals persons. These transactions are realised in commercial base and according to the laws of market. The Group did not participate in any transaction of uncommon nature or content which is essential for the Group, or the companies and the individuals connected closely with this, and does not aim to participate in such kind of transactions in the future. The table below presents analytically all the intercompany transactions:

Sales of goods / services THE GROUP THE COMPANY

30/6/2019 30/6/2018 30/6/2019 30/6/2018

Subsidiaries 0 0 752.406 175.285

Other related parties 299.454 146.543 146.716 98.230

Total 299.454 146.543 899.122 273.515

Purchases of goods / services THE GROUP THE COMPANY

30/6/2019 30/6/2018 30/6/2019 30/6/2018

Subsidiaries 0 0 1.602.690 1.276.726

Other related parties 2.254.610 3.290.979 2.239.867 3.262.020

Total 2.254.610 3.290.979 3.842.557 4.538.746

Granted loans THE GROUP THE COMPANY

30/6/2019 31/12/2018 30/6/2019 31/12/2018

Subsidiaries 0 0 0 3.540

Total 0 0 0 3.540

Balances of receivables from sales of goods / services THE GROUP THE COMPANY

30/6/2019 31/12/2018 30/6/2019 31/12/2018

Subsidiaries 0 0 162.122 124.318

Other related parties 439.676 332.303 96.888 31.351

Total 439.676 332.303 259.011 155.669


33

Balances of liabilities from purchases of goods / services THE GROUP THE COMPANY

30/6/2019 31/12/2018 30/6/2019 31/12/2018

Subsidiaries 0 1.044.220 433.291

Other related parties 1.032.467 357.201 1.020.482 353.946

Total 1.032.467 357.201 2.064.702 787.237

Income from dividends THE GROUP THE COMPANY

30/6/2019 30/6/2018 30/6/2019 30/6/2018

Subsidiaries 0 0 0 39.900

Total 0 0 0 39.900

Remuneration of key executives THE GROUP THE COMPANY

30/6/2019 30/6/2018 30/6/2019 30/6/2018

Key executives 212.851 210.408 212.851 210.408

Total 212.851 210.408 212.851 210.408

Balances of receivables from key executives THE GROUP THE COMPANY

30/6/2019 31/12/2018 30/6/2019 31/12/2018

Key executives 0 0 0 0

Total 0 0 0 0

Balances of liabilities to key executives THE GROUP THE COMPANY

30/6/2019 31/12/2018 30/6/2019 31/12/2018

Key executives 0 0 0 0

Total 0 0 0 0

Remuneration of non-executive members of the Board of Directors THE GROUP THE COMPANY

30/6/2019 30/06/2018 30/6/2019 30/06/2018

Non-executive members of the Board of Directors 18.615 12.000 18.615 12.000

Total 18.615 12.000 18.615 12.000

28. Subsequent events

INFORM LYKOS Romania (INFORM LYKOS S.A), a Romanian subsidiary of INFORM P. LYKOS S.A. Greece, on the 8th of August 2019, signed an agreement to acquire the majority stake in SISTEC NEXT DOCS S.R.L. and SISTEC CONFIDENTIAL S.R.L. More specifically INFORM LYKOS S.A. will acquire 65.07% of SISTEC NEXT DOCS S.R.L. and 65.45% of SISTEC CONFIDENTIAL S.R.L. The finalization of the agreement will be subject to the successful fulfillment of the requirements set forth in the Share Purchase Agreement (SPA). The estimated time of finalization will not exceed a 3 month period. The acquisition price for 65% of the shares of the above mentioned companies amounts to €3,5 million and will be paid following the successful fulfillment of the terms of the agreement. The Board of Directors of INFORM in Greece on 20.06.2019 decided to start the spin - off process of the production, processing, development and trading sector of printed information systems and its contribution to a new 100% subsidiary company established for this purpose. The business unitspin - off and its contribution to the new company will be carried out in accordance with the provisions of Law 4601/2019, Law 4548/2018 and the article 54 of Law 4172/2013. The balance sheet date has been set as 30.06.2019. The intention of the company is to complete the spin - off within fiscal year of 2019. The spin - off essentially aims at the organizational segregation of the Group's business activities and will not affect its financial data as the new subsidiary company formed for this purpose will be fully consolidated, as the Group will own its 100%. On 8.8.2019, the Draft Business unit spin - off Agreement was approved by the Company's Board of Directors and the


34

completion of the spin - off is subject to the approval required by the INFORM General Meeting of Shareholders as required by law and by obtaining all necessary approvals of the competent Authorities for this purpose. Apart from the above, no further event has occurred after 30/06/2019, which may have a significant impact on the Group's financial position or operation.

29. Changes in accounting principles

The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), are adopted by the European Union, and their application is mandatory from or after 01/01/2019.

a) New Standards, Interpretations, Revisions and Amendments to existing Standards that are effective and have been

adopted by the European Union

IFRS 16 “Leases” (effective for annual periods starting on or after 01/01/2019)

In January 2016, the IASB issued a new Standard, IFRS 16. The objective of the project was to develop a new Leases Standard that sets out the principles that both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’), apply to provide relevant information about leases in a manner that faithfully represents those transactions. To meet this objective, a lessee is required to recognise assets and liabilities arising from a lease. The impact of applying IFRS 16 to the Group is described in note 29 (b). IFRIC 23 “Uncertainty over Income Tax Treatments” (effective for annual periods starting on or after 01/01/2019)

In June 2017, the IASB issued a new Interpretation, IFRIC 23. IAS 12 “Income Taxes” specifies how to account for current and deferred tax, but not how to reflect the effects of uncertainty. IFRIC 23 provides requirements that add to the requirements in IAS 12 by specifying how to reflect the effects of uncertainty in accounting for income taxes. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. Amendments to IFRS 9: “Prepayment Features with Negative Compensation” (effective for annual periods starting on or after 01/01/2019)

In October 2017, the IASB published narrow-scope amendments to IFRS 9. Under the existing requirements of IFRS 9, an entity would have measured a financial asset with negative compensation at fair value through profit or loss as the “negative compensation” feature would have been viewed as introducing potential cash flows that were not solely payments of principal and interest. Under the amendments, companies are allowed to measure particular prepayable financial assets with so-called negative compensation at amortised cost or at fair value through other comprehensive income if a specified condition is met. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. Amendments to IAS 28: “Long-term Interests in Associates and Joint Ventures” (effective for annual periods starting on or after

01/01/2019)

In October 2017, the IASB published narrow-scope amendments to IAS 28. The objective of the amendments is to clarify that companies account for long-term interests in an associate or joint venture – to which the equity method is not applied – using IFRS 9. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. Annual Improvements to IFRSs – 2015-2017 Cycle (effective for annual periods starting on or after 01/01/2019)

In December 2017, the IASB issued Annual Improvements to IFRSs – 2015-2017 Cycle, a collection of amendments to IFRSs, in response to several issues addressed during the 2015-2017 cycle. The issues included in this cycle are the following: IFRS 3 - IFRS 11: Previously held interest in a joint operation, IAS 12: Income tax consequences of payments on financial instruments classified as equity, IAS 23: Borrowing costs eligible for capitalization. The amendments are effective for annual periods beginning on or after 1 January 2019. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. Amendments to IAS 19: “Plan Amendment, Curtailment or Settlement” (effective for annual periods starting on or after 01/01/2019)

In February 2018, the IASB published narrow-scope amendments to IAS 19, under which an entity is required to use updated assumptions to determine current service cost and net interest for the remainder of the reporting period after an amendment, curtailment or settlement to a plan. The objective of the amendments is to enhance the understanding of the financial statements and provide useful information to the users. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any.

b) Impact of IFRS 16

- IFRS 16 “Leases”

The new standard, which is mandatory for reporting periods beginning on or after 1st January 2019, sets out the principles for the recognition, measurement, presentation and disclosures about leases. The Group adopted the new standard on January 1, 2019 using the simplified approach and consequently did not adjust the 2018 comparative figures included in the first half of 2019. In the transition to the new Standard, the Group recognized the right-of-use assets and the respective lease liabilities for all leases previously classified as operating, except for short-term leases and leases for which the underlying assets are of low value. The rights-of-use assets of use were recognized at an amount equal to the amount of the lease liabilities, adjusted for any advance payments previously recognized. Lease liabilities are recognized at the present value of the remaining leases, using the relevant discount rate.


35

In accordance with the new Standard, the Group assesses whether a contract is or contains a lease at its inception and recognizes on a case by case basis an asset with a right to use and a corresponding lease liability for all leases other than the short-term leases (leases with a lease term of up to 12 months) and leases of underlying assets which are of low value. For these leases, the Group recognizes the lease payments as operating expenses on a straight-line basis over the lease term. At the commencement date, a lessee shall measure the lease liability at the present value of the lease payments that are not paid at that date, which are discounted using the interest rate implicit in the lease. Leases are recognized in the Statement of Financial Position on the date that the leased asset becomes available for use. Each lease is allocated between the lease liability and the interest, which is recognized in profit or loss over the term of the lease. The rights-of-use assets are initially measured at cost, and subsequently reduced by the amount of accumulated depreciation and and any accumulated impairment losses. The rights-of-use assets are depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, using the straight-line method. After the initial measurement, the lease liabilities are increased by their finance cost and reduced by the lease payments made. The Group's lease payments are related mainly to leases of means of transport and other equipment used mainly for administrative purposes. The impact by the application of IFRS 16 on January 1, 2019 is as follows:

THE GROUP

31/12/2018 IFRS 16 1/1/2019

Assets

Property, plant and equipment 46.572.490 356.266 46.928.756

Intangible assets 4.040.198 4.040.198


Investment property 232.761 232.761


Non-current assets 51.610.173 356.266 51.966.439

Inventories 6.155.854 6.155.854

Contract assets 1.177.574 1.177.574


Trade receivables 10.691.363 10.691.363


Receivables from related parties 332.303 332.303

Cash and cash equivalents 5.944.584 5.944.584

Current assets 25.299.040 0 25.299.040

Total assets 76.909.213 356.266 77.265.479

Equity

Share capital 12.758.592 12.758.592

Share premium 13.805.791 13.805.791

Reserves 14.187.849 14.187.849

Retained profits (867.435) (867.435)

Equity attributable to shareholders of the Parent Company

39.884.798 0 39.884.798

Non-controlling interests 290.609 290.609

Total Equity 40.175.407 0 40.175.407

Liabilities

Loans and borrowings 18.119.192 194.171 18.313.363



Deferred tax liabilities 618.835 618.835

Non-current liabilities 19.753.329 194.171 19.947.500


Trade payables 11.864.004 11.864.004

Other payables 1.048.188 1.048.188

Contract liabilities 629.126 629.126

Liabilities to related parties 357.201 357.201

Provisions 293.023 293.023

Current Liabilities 16.980.477 162.095 17.142.572

Total Liabilities 36.733.806 356.266 37.090.072

Total Equity and Liabilities 76.909.213 356.266 77.265.479


36

THE COMPANY

31/12/2018 IFRS 16 1/1/2019

Assets

Property, plant and equipment 23.058.013 166.680 23.224.693

Intangible assets 1.836.751 1.836.751


Investments in subsidiaries 22.021.131 22.021.131


Non-current assets 47.641.959 166.680 47.808.639

Inventories 3.143.223 3.143.223

Contract assets 682.156 682.156


Trade receivables 3.405.092 3.405.092


Receivables from related parties 155.669 155.669

Cash and cash equivalents 5.183.007 5.183.007

Current assets 13.096.807 0 13.096.807

Total assets 60.738.766 166.680 60.905.446

Equity

Share capital 12.758.592 12.758.592

Share premium 13.805.791 13.805.791

Reserves 13.367.422 13.367.422

Retained profits (4.329.736) (4.329.736)

Total Equity 35.602.069 0 35.602.069

Liabilities




Non-current liabilities 18.325.610 89.879 18.415.489

Loans and borrowings 760.214 76.802 837.016

Trade payables 3.755.518 3.755.518


Contract liabilities 569.362 569.362

Liabilities to related parties 787.237 787.237

Current Liabilities 6.811.088 76.802 6.887.890

Total Liabilities 25.136.697 166.680 25.303.377

Total Equity and Liabilities 60.738.766 166.680 60.905.446

The right-of-use assets as of 1/1/2019 and 30/6/2019 are as follows:

1/1/2019

GROUP COMPANY

Right-of-use assets - Means of transport 356.266 166.680

Total 356.266 166.680

30/6/2019

GROUP COMPANY

Right-of-use assets - Means of transport 483.867 294.281

Total 483.867 294.281

Depreciations of right-of-use assets for the first half of 2019 are as follows:

1/1 - 30/6/2019

GROUP COMPANY

Depreciation of right-of-use assets - Means of transport

62.427 34.245

Total 62.427 34.245


37

The interest on the liability for right-of-use assets for the first half of 2019 is as follows:

1/1 - 30/6/2019

GROUP COMPANY

Interest 8.219 4.625

Total 8.219 4.625

c) New Standards, Interpretations, Revisions and Amendments to existing Standards that have not been applied yet or have

not been adopted by the European Union

The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), but their application has not started yet or they have not been adopted by the European Union. Revision of the Conceptual Framework for Financial Reporting (effective for annual periods starting on or after 01/01/2020)

In March 2018, the IASB issued the revised Conceptual Framework for Financial Reporting (Conceptual Framework), the objective of which was to incorporate some important issues that were not covered, as well as update and clarify some guidance that was unclear or out of date. The revised Conceptual Framework includes a new chapter on measurement, which analyzes the concept on measurement, including factors to be considered when selecting a measurement basis, concepts on presentation and disclosure, and guidance on derecognition of assets and liabilities from financial statements. In addition, the revised Conceptual Framework includes improved definitions of an asset and a liability, guidance supporting these definitions, update of recognition criteria for assets and liabilities, as well as clarifications in important areas, such as the roles of stewardship, prudence and measurement uncertainty in financial reporting. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union. Amendments to References to the Conceptual Framework in IFRS Standards (effective for annual periods starting on or after 01/01/2020)

In March 2018, the IASB issued Amendments to References to the Conceptual Framework, following its revision. Some Standards include explicit references to previous versions of the Conceptual Framework. The objective of these amendments is to update those references so that they refer to the revised Conceptual Framework and to support transition to the revised Conceptual Framework. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union. Amendments to IFRS 3: “Definition of a Business” (effective for annual periods starting on or after 01/01/2020)

In October 2018, the IASB issued narrow-scope amendments to IFRS 3 to improve the definition of a business. The amendments will help companies determine whether an acquisition made is of a business or a group of assets. The amended definition emphasizes that the output of a business is to provide goods and services to customers, whereas the previous definition focused on returns in the form of dividends, lower costs or other economic benefits to investors and others. In addition to amending the wording of the definition, the Board has provided supplementary guidance. The Group will examine the impact of the above on its Financial Statements. The above have not been adopted by the European Union. Amendments to IAS 1 and IAS 8: “Definition of Material” (effective for annual periods starting on or after 01/01/2020)

In October 2018, the IASB issued amendments to its definition of material to make it easier for companies to make materiality judgements. The definition of material helps companies decide whether information should be included in their financial statements. The updated definition amends IAS 1 and IAS 8. The amendments clarify the definition of material and how it should be applied by including in the definition guidance that until now has featured elsewhere in IFRS Standards. The Group will examine the impact of the above on its Financial Statements. The above have not been adopted by the European Union. IFRS 17 “Insurance Contracts” (effective for annual periods starting on or after 01/01/2021)

In May 2017, the IASB issued a new Standard, IFRS 17, which replaces an interim Standard, IFRS 4. The aim of the project was to provide a single principle-based standard to account for all types of insurance contracts, including reinsurance contracts that an insurer holds. A single principle-based standard would enhance comparability of financial reporting among entities, jurisdictions and capital markets. IFRS 17 sets out the requirements that an entity should apply in reporting information about insurance contracts it issues and reinsurance contracts it holds. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.


38

Koropi Attica, September 27, 2019

CHAIRMAN OF THE BoD VICE CHAIRMAN & GROUP CEO

PANAGIOTIS LYKOS PANAGIOTIS SPYROPOULOS

ID No AB 607588 ID No AI 579288

CHIEF FINANCIAL OFFICER HEAD OF ACCOUNTING DEPARTMENT

ALEXANDRA ADAM ANASTASIOS TATOS

ID No AE 118025 ID No AM 556006 Registr. No of E.C. A’ CLASS 9657

Documents

for the period from January 1st to June 30th 2019...2019/09/27 · Panagiotis Lykos Panagiotis Spyropoulos Ilias Karantzalis I.D. No. AB 607588 I.D. No AI 579288 I.D. No AN 644777